Haven Eldercare sale bedeviled by trouble
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It initially had planned to sell its 25 nursing homes in Connecticut, Massachusetts, New Hampshire, Rhode Island and Vermont to LifeHouse Retirement Properties Inc. for $105 million. But just days before a scheduled May auction, LifeHouse dropped out of the sale because it didn't like the new Medicaid reimbursement rates set by the state of Connecticut for Haven residents.
Then on Thursday, Haven was supposed to seek the approval of Connecticut bankruptcy judge, Albert Dabrowski, of the sale it lined up after the auction, to private equity firm Formation Capital LLC for $85 million. But that hearing never took place because Formation Capital -- which also owns Genesis HealthCare Corp., the unit which had planned to manage and operate the Haven facilities -- dropped out of the sale on Wednesday, without explanation.
Now Haven plans an "orderly transition" of its homes to its secured creditors, which will credit bid their debt, and several will be taken over by the Department of Social Services in Connecticut, said debtor counsel Alan Kolod of Moses & Singer LLP. After two failed sales, the company does not plan to hold another auction for its assets. - Jamie Mason
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